Do I really need technology insurance?

Many individuals will likely think of a "data breach" happening when computer hackers break through an online system. While this is true, a breach is also considered to have taken place anytime sensitive information is no longer controlled by a company.

For business owners, either type of data breach could be costly. A Vermont medical facility is currently experiencing the aftermath of such a situation. Caledonia Home Health and Hospice had to alert patients earlier this month that an employee's laptop was stolen on July 20. The computer had a program on it called Palmwyse that contained protected information including Social Security numbers.

Susan Johnson, a director at the clinic, sent a letter out to patients who might be affected.

"The Netbook was password protected, as was the Palmwyse program," Johnson wrote. "While we think it is unlikely the information could be accessed without the dual password process, it is not impossible."

The letter then went on to describe what patients should do to ensure that their information remains safe. Individuals should review all bank and credit card statements and carefully monitor their credit reports. Furthermore, Johnson explained what should be done if any suspicious activity is found.

Recovering from events like this is hardly easy. Organizations will not only need to regain the trust of their customers—in this case patients—and they will have to tweak certain aspects of the company. Without the right technology insurance in place, this process could be more difficult and expensive.

Working with commercial insurance specialists who understand your company's needs can ensure that the best policies are found. That way, should a type of vandalism or security breach occur, you can recover quickly and in a cost-effective manner.